As solar power projects grow in number, Korea Electric Power Corporation (KEPCO) is increasingly requiring additional equipment during grid connection. In a recent column, Attorney Sungwoo (Goni) Kim of SOLARIS set out the legal standards for deciding who pays when a step voltage regulator (SVR) must be installed after the EPC contract has already been signed.

In the column, Attorney Kim summarized who bears the cost and how to prevent disputes as follows.

• (Cost allocation) If the construction contract does not expressly include installation of an SVR, the owner generally bears the cost. This follows Supreme Court precedent treating additional work that is unavoidable to obtain a public authority's approval as work ordered by the owner.

• (Exception) If the scope of work was defined broadly, as in a turnkey contract covering all equipment needed for the plant to operate normally, the contractor may have to bear the cost depending on how the contract is interpreted.

• (Prevention) To avoid this, the contract should expressly exclude additional equipment required for grid connection approval from the scope of work and exempt the contractor from liquidated damages for resulting delays.

  
  

SOLARIS provides practical legal advice on energy regulation and power plant construction disputes to help businesses operate with stability.

- Original column: Who Bears the Additional Cost of KEPCO's SVR Installation Requirement